Nevada Revised Statutes 679B.175 – Bonds or other security of regulated persons: Requirements for bond; authority for substitute form of security in certain circumstances; cancellation of bond
1. This section applies to every person regulated by the Commissioner or the Division for which a specific statute other than this section requires a bond for the person to qualify for a license or authorizes the person to file a bond as security to qualify for a license. This section does not require any licensee to obtain a bond unless one is otherwise required by law. The provisions of this section govern the bond and any claim against the bond to the extent the provisions of this section do not conflict with the provisions of the specific statutes which govern the license.
Terms Used In Nevada Revised Statutes 679B.175
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Statute: A law passed by a legislature.
2. A person may provide a substitute form of security in lieu of the bond if the specific statutes which govern the license authorize the substitute form of security.
3. Except as otherwise provided in this section, the person must deposit with the Commissioner and keep in full force and effect a surety bond payable to the State of Nevada, in an amount set forth by the Commissioner in regulation. The bond must be executed by a corporate surety which is authorized to do business in this State and is satisfactory to the Commissioner. The bond must name as principal the person, and must be in substantially the following form:
4. The bond must remain in force until released by the Commissioner or cancelled by the surety. Except as otherwise provided by law, the surety may cancel the bond upon 60 days’ advance written notice to the Commissioner and to the person to whom the bond relates. Cancellation of the bond does not limit liability which was incurred under the bond before the cancellation.
5. If the bond is cancelled, the license of the person to whom the bond relates is revoked by operation of law as of the date the bond is cancelled unless the person:
(a) Has on file another bond which meets all applicable requirements;
(b) Before the date the bond is cancelled, provides a replacement bond which meets all applicable requirements; or
(c) Before the date the bond is cancelled, provides a substitute form of security which is authorized by and meets the requirements of the specific statutes which govern the license.
6. As used in this section, ‘license’ means any license, permit, certificate of registration, certificate of authority or other authorization to engage in an activity relating to insurance which is issued to a person by the Commissioner or the Division.